Driving portfolio company performance in a changing private equity environment

US private equity funds face an increasingly competitive investment market. During the period 2010–2012, the number of deals has decreased by about 25% when compared with pre-financial crisis levels.

At the same time, it is estimated that global PE funds still have over $400 billion reserved for leveraged buyouts. The combination of these factors has resulted in more competitive auction processes for buyout firms, requiring sponsors to be competitive when determining management awards.

PwC’s 2013 US Private Equity Portfolio Company Stock Compensation Survey highlights practices and trends in equity compensation design among US based private equity firms. This year’s survey includes data on 30 US based portfolio companies acquired by 17 different sponsors since January 2010.